A recent survey conducted by the Togolese Chamber of Commerce and Industry (CCIT) reveals that more than ⅔ of private businesses operating in the country have kept all their employees working, despite being hit by the Covid-19 pandemic. 

However, the study entitled “Effects of the Covid-19 on economic activities” also indicated that more than 92% of the 1,084 surveyed businesses had recorded a fall in their revenues between February and March, due to the crisis. In detail, 34% of the firms reported a fall exceeding 75%, while 62% of them said they lost nearly half of their earnings over the period considered. 

According to the document, job cuts, though minimal, were mostly reported by small businesses. 

Still, Germain Mèba who heads the CCIT, said things could get worse “if the pandemic were to persist for more than three months.” In such a case, the survey notes, “more than 92% of private businesses may not be able to clear their debts, and more than 84% of them will not be able to pay salaries.” 

Recommended solutions 

To better cope with the current crisis, and the government’s response, the private sector has recommended a few measures to public authorities. 

Among these measures, private businesses asked for the “postponing, at zero-cost, of debt payments to lenders, special loans, and tax reliefs in favor of large businesses to mitigate Covid-19-related risks.” Another request includes the exemption of personal income and corporate income taxes. 

Also, the State could provide SMEs a guarantee to secure financing, or concessional loans, to make these businesses more resilient to the Coronavirus’ impact. 

Regarding social measures, private companies mentioned the need for the government to subsidize “actions aimed at protecting employees and customers against the pandemic.” 

Let it be recalled that the government, to prevent the current health crisis from taking a heavy toll on the private sector, has already adopted a battery of economic, financial, fiscal, and social measures. 

Séna Akoda

The French Development Agency, AFD, will provide Togo XOF141 million (€215,000) to fight the Coronavirus pandemic. 

The funds will in effect be injected into a project that aligns with France’s Covid-19 Santé en Commun scheme which was launched at the beginning of April and is backed by another project aimed at boosting the quality of medical biology services in West Africa (RESAOLAB+). Besides Togo, other beneficiaries of the grant are Benin, Niger, and Guinea. 

In Togo, the project will be put in place at the CHU Campus, through a partnership between the Togolese laboratories directorate and the Mérieux Foundation which combats infectious diseases in developing countries. 

Most of the money provided, it should be emphasized, will partly be used to buy equipment, for diagnostics and treatment, as well as personal protective equipment to ensure the safety of medical staff. 

Another part of the funds will serve to create a platform for sharing documents and counseling decision-makers in the health sector. Lastly, they will help collect data toward assessing the role of laboratories amid the ongoing health crisis.

On May 5, 2020, the ministry of economy and finance met with actors of the Togolese banking industry (the professional association of banks and financial institutions - APBEF), and the Central Bank of West African States (BCEAO). 

The talks were centered on the impacts of the coronavirus on the Togolese economy, and especially on banking services, SMEs and agriculture. 

Also, Sani Yaya, the minister of finance, took the opportunity to recall the various steps initiated by Lomé to help businesses amid the Covid-19 crisis. These include “exempting taxes and duties on agricultural equipment, exempting custom duties and VAT on imported equipment and drugs in the framework of the fight against the Covid-19.” 

Among others, the official mentioned the “suspension of penalties imposed on firms that couldn’t submit their financial statements on time, depending on the activity sector.”  

Let’s recall that President Gnassibgé recently launched a solidarity fund to help SMEs and other businesses cope with the impact of the Covid-19 pandemic. In the same framework, Kossi Tenou, national director of the BCEAO, announced that his institution has taken specific measures that will enable businesses successfully overcome the crisis.

Yesterday, Sani Yaya, the minister of finance met with microfinance institutions to assess the impacts of the Covid-19 outbreak on their activities and review the implementation of measures taken by the Central Bank. 

On this occasion, Yaya reiterated the government’s commitment to supporting microfinance institutions. 

“This crisis, and the situation of microfinance institutions, are major concerns for the government,” the minister indicated while emphasizing that key decision-makers across the WAEMU are also looking into the issue.  

The official demanded that the institutions provide working capital to their customers, to cushion the negative impact the current sanitary crisis may have on their activity and support the government’s efforts in the agricultural sector. 

A reflection committee should soon be put in place to organize the economic response to the pandemic. This committee should include members of the ministry of finance, the Central Bank, banks and microfinance institutions, as well as various actors of the private sector. 

German cement group HeidelbergCement will contribute XOF20 million to the national solidarity fund recently launched by the Togolese government to fight the Covid-19 outbreak. 

Eric Goulignac, managing director of the group which operates in Togo via Cimtogo, Scantogo, and Granutogo, said “it is natural that HeidelbergCement contributes to joint efforts to overcome the pandemic. It is a common cause,” he added.   

HeidelbergCement’s contribution thus adds to that of others such as the professional association of banks which has disbursed XOF100 million for the same cause.

Last year, the Togolese Office of Revenues (OTR) paid back more than XOF2 billion of VAT loans to business operators. 

The amount makes 65% of a total of XOF3.2 billion the authorities should have reimbursed. 

The OTR explained the non-payment of the remaining sum saying corresponding requests did not conform to their objectives. For example, some companies asked for money to purchase goods for personal use while others demanded funds for equipment that is not part of eligible goods. 

Throughout the reviewed year, VAT loans were repaid over an average of 23 days, according to data available. 

VAT loans are calculated by subtracting deductible VATs, which are paid by businesses upon purchases, and collected VATs, which is the amount collected after sales.

Séna Akoda

Last Tuesday, the national health insurance institute (INAM) and the Fund Supporting Youth-led Economic Initiatives (FAIEJ) inked a partnership agreement to train tailors and seamstresses so they make quality face masks amid the Covid-19 pandemic. 

The masks in question will be reusable, washable, and sold at a subsidized price. 

The move aims at preventing the spread of the virus in a context where more artisanal masks and ventilators are being produced in the country. 

Séna Akoda

Tomorrow, May 7, all health ministers of the WAEMU will hold a videoconference to discuss practical steps to take towards implementing recommendations of the Union’s leaders relative to the Coronavirus. 

Moreover, the officials will talk of ways to improve coordination to handle the pandemic at the community level. For example, they will look at sanitary measures that should be taken at the internal and external borders of the WAEMU. Most importantly, they will elaborate and put in place a regional strategy to boost the capacities of member-States’ health systems to tackle the threat. 

So far, Togo has reported 128 Covid-19 cases. Out of these, 45 are still active, 79 recovered and 9 died. Across the WAEMU, the most affected are Côte d’Ivoire (1,464), Senegal (1,329), Niger (763), and Burkina Faso (688).

The Teolis Foundation and GIZ, the German cooperation, have partnered to establish a digital College. 

According to the two actors, the project aligns with their interest in digital professions and education which is key to emergence. 

In effect, they say, the academy will enable its students to “travel, take certified courses from home at low costs, get remote jobs,” and practice digital professions such as web developers, community managers, and more. 

The TEOLIS digital college, which is a pilot, will be improved and replicated in the coming years, added GIZ and its partner.  

Séna Akoda